Cracking the Code to Consistent Payments
Inconsistent payments are a common frustration for wholesale cannabis sellers. Whether it’s dealing with late payments or chasing down invoices, the traditional payment process can be overwhelming and time-consuming. Payment on Sell-Through (PoST) solves this problem by providing sellers with consistent and predictable payments. Sellers can ensure they’re paid on time without the usual hassle.
The Impact of Inconsistent Payments on Your Bottom Line
Financial unpredictability can stall operations, leading to missed opportunities and strained relationships with retail partners. Time spent chasing down overdue invoices or reconciling payment discrepancies consumes valuable resources. As a result, core business functions like sales and product development get overlooked.
Here are some real-life examples of how inconsistent payments can impact wholesale cannabis operators:
- Inventory Shortages: Imagine a cannabis operator who has a bulk-order from a dispensary, but experiences a delay in payment from a previous retail customer. Without the expected cash flow, the seller can’t afford to restock crucial inventory. This results in empty shelves, missed sales opportunities, and potentially damaging the brand’s reputation as a reliable supplier. The inability to invest in new inventory due to delayed payments can lead to stockouts that not only hurt revenue, but also damage relationships with retailers who rely on timely deliveries.
- Missed Expansion Opportunities: A wholesale cannabis seller is looking to expand into new dispensaries in a neighboring state. Because of inconsistent payments from retail customers, they don’t have the cash flow to support the production and marketing needed to scale their business. This forces the brand to hold back on growth plans and miss out on lucrative market opportunities. It also gives their competitors the opportunity to gain traction in a new market.
- Stalled Product Development: A wholesale cannabis operator has an opportunity to develop a new product line based on emerging trends. The seller is has been receiving ongoing late payments and has several unpaid invoices. This leaves the company without financial flexibility to fund research and development. The constant chase for overdue payments ties up resources and forces the business to delay or cancel plans that could have led to future growth and diversification of their offerings.
In each of these cases, Payment on Sell-Through (PoST) could provide the stability and predictability needed to avoid these scenarios. By increasing regular payments based on product sell-through, PoST helps cannabis operators maintain consistent cash flow, plan effectively for growth, and reduce the stress of financial uncertainty.
PoST is the Key to Consistent Payments
Instead of relying on traditional payment models like payment on delivery or net terms, PoST aligns payments with sell-through. Retailers only pay for what they’ve sold, and sellers receive weekly payments. This approach minimizes payment delays and allows sellers to plan their finances more effectively.
Advantages of PoST for Wholesale Cannabis Sellers:
- Automated Payments: Sellers are automatically paid weekly based on product sell-through, ensuring consistency and reliability.
- Reduced Admin Work: PoST eliminates the need to chase down late invoices or manually reconcile payments, allowing sellers to focus on growing their business.
- Cash Flow Stability: With PoST, sellers can maintain stable cash flow without the stress of unpredictable payments.
PoST cracks the code to consistent payments, helping wholesale cannabis brands stabilize their finances and focus on what really matters—growing their business.
Request a demo to learn more about how your business can benefit from PoST.